Amount Seized From Third Party Is Not Eligible For Adjustment Against Advance Tax Liability Of Assessee: Punjab & Haryana HC

The Punjab and Haryana High Court has ruled that amounts seized from a third party cannot be adjusted against the advance tax liability of the assessee. The case involved a situation where funds seized from an unrelated party were sought to be applied towards the taxpayer’s advance tax obligations. The Court held that only amounts directly related to the taxpayer’s own assets can be used for such adjustments. This ruling clarifies the limits of fund adjustments and ensures that tax liabilities are settled based on directly attributable funds.